A Medical Device Daily
Allscripts-Misys Healthcare Solutions (Allscripts; Chicago) reported that its board has approved a stock repurchase program under which Allscripts may purchase up to $150 million of its common stock over the next two years.
Additionally, Allscripts has entered into a stock repurchase agreement with Misys (Raleigh, North Carolina) and certain of its affiliates whereby Misys has agreed to participate in the repurchase program by selling to Allscripts the number of shares of Allscripts common stock needed to keep Misys' ownership percentage in Allscripts unaffected by the open market repurchases.
Repurchases of Misys' stock will be made at the weighted average price at which repurchases are made by Allscripts under the open market plan. All repurchases under the program are subject to compliance with applicable laws and regulations.
The aggregate amount of shares purchased pursuant to the repurchase plan, whether pursuant to any 10b5-1 plan, Rule 10b-18 or from Misys, will not exceed the lesser of $150 million (including commissions) or 15 million shares.
"Improving the quality and cost-effectiveness of healthcare through technology is among the most important of our nation's priorities and, consequently, we continue to see a vibrant market for the electronic health record, electronic prescribing, information and connectivity solutions we offer," said Glen Tullman, CEO of Allscripts. "We plan to use our strong balance sheet and cash flow to initiate a share repurchase program that will benefit all of our shareholders and will capitalize on the underlying value of Allscripts and our position as the clear leader in the healthcare information technology industry."
Allscripts also reported that it has entered into an amendment and restatement of its credit facility agented by JPMorgan Chase Bank which increases commitments under the facility by $50 million to $125 million and adds Fifth Third Bank as syndication agent and co-lead arranger.
The credit facility also may be expanded by an additional $25 million to a total of $150 million. The initial interest rate on the credit facility is expected to be LIBOR plus 2.0%.
More than 150,000 physicians, 700 hospitals and nearly 7,000 post-acute and homecare organizations utilize Allscripts solutions, which include electronic health record, electronic prescribing, revenue cycle management, practice management, document management, medication services, hospital care management, emergency department information systems and homecare automation.
HCA (Nashville, Tennessee) reported that it intends to offer to sell $300 million aggregate principal amount of senior secured second lien notes due 2017.
The company said it intends to use the net proceeds from the offering to repay existing indebtedness, which may include borrowings under HCA's term loan, revolving and/or asset-based senior secured credit facilities. Some proceeds may also be used to repay other existing senior unsecured indebtedness.